Overview
This section defines the scope of organizational conflict of interest (OCI) regulations, specifying that they apply broadly to various entity types and acquisition categories while identifying service areas where conflicts are most prevalent.
Key Rules
- Broad Entity Coverage: The regulations apply to both profit and nonprofit organizations, including those created or funded primarily by the Government.
- Universal Acquisition Scope: Applicability is not limited to specific acquisition types, though it highlights high-risk areas such as management support, consulting, technical evaluations, and systems engineering.
- Current and Future Reach: OCIs can arise from factors affecting the "instant" contract or from work that creates a conflict for future acquisitions, often necessitating restrictions on a contractor's future activities.
- Statutory Exemptions: Any acquisition governed by its own unique agency-specific OCI statute is excluded from the requirements of this FAR subpart.
Practical Implications
- Contractors performing advisory or technical evaluation roles must be prepared for potential "lock-outs" from downstream production or implementation contracts to prevent unfair competitive advantages.
- Agencies and contractors must evaluate OCI risks not just for the current period of performance, but for the long-term impact on the contractor's ability to compete for future government work.